Two storylines dominated the tape this week: a blowout August jobs report that reignited rate-hike bets and blockbuster earnings from Dell Technologies Inc. that reinforced the AI infrastructure thesis.
The Bureau of Labor Statistics reported nonfarm payrolls rose 162,000 in August, nearly three times the 55,000 consensus and the strongest monthly gain since March. Unemployment held steady at 4.1%.
The prior month's loss of 23,000 was also revised up to a positive 21,000, cleaning up the summer's weak trend.
By the afternoon of Sept. 4, September hike odds soared to 60%.
The stock market reaction was positive, despite pressures for higher interest rates. Wall Street's ability to absorb a hot jobs report without a broader repricing signals confidence
that corporate earnings can outrun higher borrowing costs.
On Wednesday, New York Fed President John Williams delivered the most important central bank message of the week.
Williams told CNBC that the recent surge in Treasury yields is not a sign of market dysfunction or fiscal panic, but a straightforward reflection of economic strength.
"What's driving it, in large part, is really a strong U.S. economy and a strong economic outlook fueled by big investments in AI and data centers and technology in general," he said.
That confidence is not misplaced. The second quarter of 2026 has delivered the strongest earnings season since 2021. Per FactSet, the blended S&P 500 earnings growth rate came in at 50.4% year-over-year, the second consecutive quarter above 25% and the seventh straight quarter of double-digit growth.
Revenue expansion has been broad. Roughly 76% of S&P 500 companies beat revenue estimates, above the five- and 10-year averages, with 10 of 11 sectors posting year-over-year earnings growth.
Dell reboots the AI infrastructure trade
Dell’s second-quarter 2027 revenue hit a record $47 billion, up 58% year-over-year and beating the $44.92 billion consensus by $2 billion. Adjusted EPS came in at $7.04, up 203% and blowing past the $4.87 estimate by 44%.
The AI numbers were staggering.
Dell booked $60.9 billion in AI server orders during the quarter, bringing 12-month cumulative AI orders to $131.7 billion. AI-optimized server revenue was $16.4 billion, doubling year-over-year.
Next week, all eyes turn to the August CPI report on Friday, Sept. 11 — just five days before the Federal Open Market Committee's September meeting, and likely the final piece of data that would decide whether the Fed hikes or holds.
Benzinga is a financial news and data company headquartered in Detroit.
This article originally appeared on Detroit Free Press: Blowout jobs report and Dell earnings dominate Wall Street's week
